1) what is the iRR of the investment? (write as percentage to 2 decimal places)

2) what is the maximum amount that should be paid? (keep as many decimals in calculation but round to 2 decimals final answer)

Mountain Ridge Properties is evaluating a real estate investment of Ocean Park Estates. Management plans to buy the property today and se it 11 years from today. The initial cost of the property is $12 million and the expected sale price is $26 million. What is the IRR of the investment? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. Enter your response below. Number % A currently used machine costs $5,000 annually to run. What is the maximum that should be paid to replace the machine with one that will la 7 years and will cost only $3,500 annually to run? The opportunity cost of capital is 12 %. The maximum amount that should be paid is: $ Number (please round your final result to 2 decimals, but keep as many decimals as possible during calculation)